Joo Byung-ki, the chairman of the Korea Fair Trade Commission (KFTC), expressed dissatisfaction over the discussions regarding the relaxation of the separation of banking and commerce, which he considered to be biased. During a press conference on the 21st, Joo stated, “We cannot change decades-old regulations on the separation of banking and commerce due to complaints from a few companies.” This remark was interpreted as a response to the calls from major semiconductor companies like Samsung Electronics and SK Hynix for regulatory easing to facilitate large-scale facility investments.
Earlier, President Lee Jae-myung had met with Sam Altman, CEO of OpenAI, on October 1st, suggesting the possibility of relaxing regulations on the separation of banking and commerce within a safe framework due to the large scale of AI investments. This sparked predictions within the business community about the potential easing of restrictions on corporate venture capital (CVC) and investments by holding company subsidiaries.
Despite acknowledging the need to boost investments in advanced industries, Joo expressed significant dissatisfaction, noting that the discussions had been driven by complaints from one side instead of societal consensus. His comments suggested that he leaned towards maintaining the separation of banking and commerce. He emphasized that the focus should be on encouraging investments in the advanced strategic industry sector rather than altering the separation regulation.
Joo also remarked that the argument that the regulation has been ineffective is not a valid reason for its abolition, stating that if regulations on conglomerates are not functioning, it implies a need for even stronger enforcement.